The Consumer Price Index data is out for September, and it’s up 0.4%, above the expected 0.2%. Year over year, the CPI is up 8.2%.
What does this mean? Inflation is still strong, increasing the likelihood that the Fed will continue hiking interest rates. (Full details and article here.)
From a real estate perspective, our opinion this will keep volume lower than it has been for the last years, which was an inevitable anyway! The market was running white hot, and that couldn’t continue forever.
In terms of the Chattanooga real estate market, September’s figures are showing that we still have a fundamentally solid market. Sales volume is down only 4.8% YTD with 973 closed sales in September, and Median Sales Price is $306,625, a 17.8% YTD increase. We anticipate 4% appreciation locally going forward, meaning prices will go up.
What does that mean for you as a buyer, seller, or investor? Unlike some of our peers, we have never recommended timing the market. The best strategy is to buy, sell, or invest when the time is right for you.
People always stress about the interest rate as if it’s a 30 year commitment, where in reality people often sell or refinance within a few years. Additionally, we work with some lenders that have ARM products and other offerings that can keep your rate lower for now, so the numbers work on an investment!